Above a bank in north Bombay, India’s future hairdressers are sculpting the tresses of volunteer models more willing to let trainees loose on their hair than a seasoned local stylist wielding a bottle of dye. “Everyone is very particular about their hair these days,” said Ruchi Khater, from beneath a stack of silver foil at L’Oréal’s hairdressing academy.

For a customer who needs more than a trim, a visit to a hairdresser in India has traditionally been something of a hair-raising experience. This was particularly true for fair-haired Western women with layered styles and blonde highlights. They learnt the hard way that Indian hairdressers know little of colour beyond a jet-black rinse or a streak of henna.

That is not surprising as 85 per cent of Indian women have long, straight hair. Their natural tone is dark and they prefer home remedies recommended by their mothers. Most still use hair oil - vegetable oil, no less – rather than fancy conditioners.

It is a challenging environment for any company trying to sell packaged beauty products – to the majority of India’s 1.1 billion people they are not only alien but also an extravagance.

The solution for L’Oréal, the world’s largest beauty and cosmetics group, was to create a market from scratch.

Since it opened its first academy in Bombay in 2006, 73 hairdressers have graduated. The six-month course turns out professionals capable of working as a junior in one of the select but growing number of international-standard salons in India’s big cities.

L’Oréal’s distribution network also plays a vital role. Over the past decade the company has trained more than 30,000 hairdressers in India in the use of its products. And it has helped to establish about 300 salons in the past five years. The theory is simple: If there is no natural demand for your goods, stimulate it. “We have created a profession and a market,” Didier Vil-lanueva, L’Oréal India’s country manager, said. “If you train people they will use your products.”

The students, who pay 200,000 rupees (£2,440) each, are green to say the least. “Most who come do not know how to hold scissors or use a blow dryer,” Caroline Lannuzel, academy director, said.

Competition is strong with more than 50 applications for 15 places. Sohini Rohra, 24, a former model, got in. “People did not know what a bad haircut was. My mother’s generation did not have a clue because there was no exposure to these things,” she said.

In a media-driven culture obsessed with Bollywood, urban consumers are very demanding and image is everything. They read glossy magazines such as Vogue, which launched an Indian edition in September, and follow the changing fashions of their favourite celebrities.

Much like Britain’s tabloid fascination with David Beckham’s changing hairstyles, the recent decision by Mahendra Singh Dhoni, the 26-year-old captain of the one-day cricket team and the face of Brylcreem in India, to chop his long locks made front-page news.

Unprecedented economic growth in India, which is forecast by McKinsey to become the world’s fifth-biggest consuming nation by 2025, has created a raft of opportunities for international lifestyle brands.

Emerging markets such as India are driving the growth of the cosmetics industry. L’Oréal, which uses Aishwarya Rai, the Bollywood star and former Miss World, as one of its international faces, estimates there are 70 million potential consumers being created every year.

Its sales in India, where it is No 2 behind Unilever, are growing at 35 per cent a year. This year, they are about €100 million (£71 million).

Although L’Oréal’s professional products division represents only 17 per cent of total revenues, hair colour was the Paris-based group’s genesis and remains the creative heart of the business. Money-spinning mass-market brands such as Garnier are being pushed hard in India, where the company estimates there is a market of 50 million people.

Its rivals agree. Franck Provost, the beauty salon group, also has a hairdressing academy in Bombay and Toni & Guy opened a salon this year. “There is a beauty business in India waiting to happen,” said Kishore Biyani, managing director of Pantaloon, India’s largest retailer.

Two thirds of the population is under 35: youth will drive growth. In the L’Oréal academy, it has at least two new potential customers.

Sweety Vardhan, 22, a recent graduate, and her friend appear thrilled with their haircuts and say they will be back. “Because I trust them,” she said.

L’Oréal hopes that very soon it will be because they think they’re worth it.

Hair and care

—In India, 66% of shampoo sold is in 7.5ml sachets. Four billion are sold each year

—Up to 96% of urban Indian women use shampoo, 46% facial cleansing products and 47% wear foundation

—About 94% use hair oil, 42% use henna and 74% use home remedies

—About 42% of Indian men dye their hair Half the skincare market is skin lightening creams. Hindustan Lever’s Fair & Lovely accounts for 85%

—Garnier had worldwide sales of €2 billion. It brought the first antiageing cream to India in 1995

—L’Oréeal’s sales per capita in India is 10 cents. In France, it is €28

—The cosmetics market in India is growing at 16%

Source: L’Oreal, Nielsen

Times Recommends

• C&G axed - 1,660 jobs to be lost
• UK house prices rise 1.1% as buyers return
• Mixed reaction to US banks repaying bailouts